British pharmaceutical giant AstraZeneca is facing suspicions of evading import duties in China for two cancer drugs.
AstraZeneca's booth at the international supply chain exhibition held in Beijing (China) in November 2023 - Photo: REUTERS
According to The Paper on February 6, AstraZeneca confirmed that the company had received a notice from Shenzhen Customs (China) since January 2025, about unpaid import taxes on two cancer treatment drugs, with an amount of up to 900,000 USD.
Can be fined up to $4.5 million
The information was stated in AstraZeneca's fourth-quarter 2024 financial report released the same day, confirming that it was being investigated in connection with the company's failure to pay import taxes worth $900,000 for drug products.
This could result in a penalty of 1-5 times the unpaid tax, which could total up to $4.5 million.
AstraZeneca also explained that the unpaid tax related to two cancer drugs, Durvalumab (Imfinzi) and Tislelizumab (Imjudo), and acknowledged the possibility of penalties if it is found liable.
In a call with investors, AstraZeneca's UK headquarters also revealed that the investigation into its China executives was mainly related to the illegal import of anti-cancer drugs from Hong Kong into mainland China.
AstraZeneca said it would continue to work closely with Chinese authorities to resolve the incident.
According to Chinese financial economic website Yicai , this new information has helped ease market concerns about AstraZeneca, the company's shares in the UK increased by nearly 3%.
Some investors had previously feared that if the company did not disclose new information about the investigation into its Chinese executives in its fourth-quarter 2024 report, AstraZeneca shares would continue to be sold off.
AstraZeneca's trouble in China
Since late October 2024, after former AstraZeneca China CEO Wang Lei was arrested for investigation, AstraZeneca has begun assessing the impact of the investigation on executives in key markets.
According to Yicai , after Mr. Wang Lei was arrested, the company revealed that more than 100 of its sales staff in China were also investigated and sentenced for involvement in another large-scale health insurance fraud case.
In December 2024, AstraZeneca appointed Ms. Iskra Reic as the person in charge of operations in China to replace Mr. Wang Lei.
However, some investors have expressed concerns that Ms. Reic lacks deep experience in the Chinese market, and may have difficulty leading AstraZeneca during this challenging period.
AstraZeneca shares plunged after news of Wang Lei’s arrest, wiping about $18 billion off the company’s market value, but have since recovered.
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